Highway development: Norms for govt aid to HAM projects eased

The government will now pay the upfront construction payment support to a highway project concessionaire under the hybrid annuity model (HAM) model in 10 tranches against 5, subject to the overall ceiling of 40% of the project cost.

The frequenting of the installments, aimed at making the model more attractive for the concessionaires, comes in the backdrop of declining share of the HAM model in the overall highway project awards by the National Highways Authority of India (NHAI). From its peak of 55% in 2016-17, HAM’s share in overall projects awards by NHAI fell to just 28% in 2019-20. Frequenting of the installments will help concessionaires to better manage their working capital requirement.